Trump scraps plans for additional tariffs on European imports

Trump scraps plans for additional tariffs on European imports after Arctic talks

Donald Trump reversed plans to impose new tariffs on several European countries.
He announced the decision on January 21 through his Truth Social platform.
Trump cited progress on a future Greenland and Arctic framework after talks in Davos.
He met NATO Secretary General Mark Rutte during the World Economic Forum meetings.

Previously, Trump threatened a 10% tariff on imports from eight European countries.
He also planned to raise the tariff to 25% starting June 1.
The affected nations included the UK, Denmark, France, Germany, and Nordic states.
These countries play key roles in steel, aluminum, and battery material supply chains.

European Parliament response and trade agreement risks

Meanwhile, the European Parliament paused ratification of a US trade agreement.
Lawmakers acted in protest against earlier US tariff threats linked to Greenland.
The Guardian described the move as the bloc’s strongest material response in years.
As a result, trade uncertainty briefly weighed on European commodity markets.

Bernd Lange chairs the European Parliament’s Trade Committee.
He said compromise remains impossible while tariff threats persist.
However, he confirmed EU energy purchase commitments remain unchanged.
The EU still plans to buy $750 billion in US energy supplies.

Potential countermeasures and market implications

Earlier, EU officials considered countermeasures worth €93 billion.
These tariffs could target US industrial goods and raw materials.
The bloc could quickly reactivate measures suspended after a July trade deal.
Such action could affect transatlantic flows of metals and critical minerals.

However, Trump’s reversal reduces immediate risks for global commodity pricing.
Aluminum, nickel, and battery metals benefit from stable trade expectations.
European producers and US importers now avoid sudden cost disruptions.

SuperMetalPrice Commentary:

Trump’s decision signals a tactical de-escalation rather than lasting trade stability.
However, Arctic geopolitics now link directly to metals and energy markets.
Investors should monitor US-EU diplomacy closely for future pricing volatility.
For metals buyers, reduced tariff risk supports near-term procurement planning.